Check my work 3 Use the following selected data from Busines

Check my work 3 Use the following selected data from Business Solutions\'s income statement for the three months ended March 31, 2018, and from its March 31, 2018, balance sheet to complete the requirements below: computer services revenue, $27,583; net sales (of goods) $20,157; total sales and revenue, $47,740; cost of goods sold, $14,788; net income, $19,632; quick assets, $91,460; current assets $95,968; total assets, $121,024; current liabilities, $915; total liabilities, $915; and total equity, $120,109. 12 points Required 1. Compute the gross margin ratio (both with and without services revenue) and net profit margin ratio. 2. Compute the current ratio and acid-test ratio 3. Compute the debt ratio and equity ratio 4. What percent of its assets are current? What percent are long term? eBook Print References Complete this question by entering your answers in the tabs below Req 1 Req 2 Req 3 Req 4 Compute the gross margin ratio (both with and without services revenue) and net profit margin ratio. (Round your percentage answers to 1 decimal place.) With Service Revenue Without Service Revenue Gross margin ratio Net profit margin ratico Reg Req2>

Solution

Gross Margin ratio = Gross Profit*100/Net Sales

Gross profit – Sales - COGS

With Service revenue: 32,952*100/47740 = 69.0%

Without Service Revenue: 5369*100/20157 = 26.6%

Net Profit margin ratio = Net Profit*100/Sales

With Service Revenue: 19632*100/47740 = 41.1%

Current Ratio = Current Assets/Current Liabilities

= 95968/915 = 104.9

Acid Test ratio = Quick Assets/Current Liabilites

=91460/915 = 100.0

Debt Ratio = Debt/Total capital

=0*100/120109 = 0%

Equity ratio = Equity/Total Capital

=120109*100/120109 = 100%

Current assets % = Current Assets/Total Assets

=95968*100/121024 = 79.3%

Long – Term Assets = 100-79.3% = 20.7%